Change

Comm

Culture

Power

Strategy+str
ucture

SANRIZZ
ENRON
SOLARIS/SUPER
NOVA
AUTO-MAKERS
APPLE
Lecture 1 ppl& organisation

Why OB is important

Defining feature of modern world

All ppl work in org
Have to interact with othet ppl
Enter management roles
Know how gourps behave---mange, need OB
Provides a set of conceptual tools, based on evidence, help work effectively

Taylor devised four principles of scientific management

1 job design using scientific analysis to assess every element of word
2 HR Management: managers choose and develop, unlike employees chose and trained
themselves
3 performance Monitoring and Reward managers ensure work done
4 development of management profession division of labour based on expertise. Manager
manage, employees do what they are best at
Taylors Enduring Legacy

1. The separation of Conception and Execution (Managers think and workers do).
2. Standardisation of tasks; deskilling.
3 The belief that managerial authority is based on scientific impartiality.
4. Financial reward is the employees main motivator (Taylors idea of the Trained Gorilla).
5. A mechanistic view of the organisation people as interchangeable parts; just cogs in the
machine.BUT plays down the psychological & social aspects of organisation (e.g., job
satisfaction, social affiliation, etc.).
Human Relations School
Elton Mayo
Believed that the worker problem (eg: dissent, disobedience, industrial unrest, etc.) was a result
of psychological disturbances brought about by the alienating nature of work.
The Hawthorne Studies
By spending so much time around the workers, researchers began to notice a number of
important social factors that had an impact of productivity
Increase happiness by making work more involving + recognize social value

Despite the isolating effects of standardisation and the increasing technical division of labor,
work remains a group activity.
Work activities
Since need of recognition, security, sense of belonging---- gravitate towards informal goups
Informal groups: social control over working habits + attitudes
Managers should recognise the impact of these informal groups in exerting an influence on
productivity (e.g., chiselers and ratebusters).
Organisations should seek to ensure a good fit between informal groups and formal work
structures.

The Enduring Legacy of the HRS

One of the main considerations of OB is the quality of the employees working life.
Importantly, social aspects of work have a major impact on a persons quality of working life.
Often informal social networks do not reflect formal organisational structures.
There is more to motivation than money (e.g.intrinsic versus extrinsic rewards).
OB has become increasingly interested in the norms, values, and social mores that influence
behaviour.
The rise of the Corporate Culture Movement.
The rise of TEAMWORK as an attempt to improve quality of work life AND align formal
organisational structures with informal social structures.

Lecture 2 Perception, Attribution, Decision-making

PERCEPTION: the process of organising and interpreting sensory data to make sense of your
environment
Perceptions of reality form the basis for behaviour in all facets of our lives
Very important in organisational settings, because our perceptions inform our decisions and
actions
People assume our perceptions allow us to know what is real. But there are limits
We cannot observe, affect and know how someone is feeling.
1. Affect=observable mood
2. We may be expected to display a mood x really feel (fake)
3. We may deliberately display a mood ----deceive
4. Fundamental problems:
Physiological+psychological limits to our perception ----impinge our cognitive ability
Cognitive Limits to perception
Even point out to you, still have trouble to see whats really are
Gestalt psychology Our brain is predisposed to certain types of perception
(Gestalt = Shape/Form).
Highly influential in organisational behaviour through the work of Kurt
Lewin.

Limits to perception: draw conclusions on the basis of limited infor, we are evolutionally
adapted to do this.
Social determinants: our background, education, social class
Limits to accuracy of our perception:
1 intentionally misleading behaviour
2 physiologically/ psychologically
3 social factors
This can have important impacts on how we perceive reality, and act, within
organisations

Perceptions at Work: Passing Judgement On Others

In organisations, we are constantly expected to draw conclusions about why people do things (e.g.,
motivation).how well people do things (e.g., performance management). how well people will do
things in the future e.g. recruitment,
selection, and promotion).
Humans are intentional--- behaviour has motivation
Internal factor--- intend the consequence
External factor--- result of matters beyond their control
Distinctiveness: person behave in the same way, in different circumstances
Eg: Im late regardless where to go
Consensus: same situation, same way
Eg: only Im late
Consistency: is the behaviour predictable over the long term
Eg: Im always late, no others
Attribution theory is about how we attribute motives, intentions, etc.
On the basis of our observations on behaviour.
Attribution error:
When passing judgements to others, underestimate impacts of external factors, overestimate
impact of internal factors.
Eg: In the workplace a manager may be more inclined to attribute poor performance to an individuals
failings, rather than something more systematic.
We are inclined to attribute our own success to internal factors rather than external factors (the
Paris Hilton factor)
Eg: In the workplace, the manager may attribute the success of division to his/her own leadership skills
rather the hard work of his/her than employees.

The Primacy Effect Research indicates that we draw conclusions about others in a matter of
seconds.
Selective Perception we focus on particular things, reflecting our own interests, background, etc.
Shows the importance of cultural expectations, background, social class, external signals, etc.

Importantly, first impressions are difficult to shake off.

Other Sources of Bias or Shortcuts

The Halo Effect Using one form of behaviour to draw conclusions about other forms of behaviour
(positive or negative)

The Contrast Effect If you want to look attractive, stand next to someone ugly!

Projection We attribute our own motivations to others.

Stereotyping Using simple membership of a group (age, ethnicity, gender, class, etc.) to
predict individual behaviour.

Recruitment & Selection Interviews (when used alone) are a poor predictor of performance but we
still heavily rely on them.
Performance Management we tend to overestimate the performance of above average performers
and underestimate the of below performance average performers.
The Double-Curse
Our lack of skill not only deprives us of the ability to improve on poor performance, but also deprives us of
the ability to recognise our performance is poor in the first place!
The less skilled and knowledgeable we are, less likely we are to recognise our deficiencies
Decision Making
Decisions involve choosing a course of action from among a number of possible courses of
action
Decision making is a response to a perceived problem or problems
Decisions are based on data, in the form of perceptions
Therefore, perceptions are crucial in decision making in organisations
Relevant: The problem is clear and unambiguous.
We have all the relevant information.
We can evaluate all possible outcomes.
We can rank those outcomes in terms of
preference criteria.
We can take as long as we need to.
With all the above in place, we can make an
optimal or maximising decision.
Herbert Simon and Bounded Rationality
Simon suggests that decisions are made on the basis of satisficing - i.e., decisions are made
on the basis of being able to satisfy certain minimum standards.
Individuals can never make decisions on a truly rational basis as they have limited
information processing capabilities.
Our decisions are arrived at using a combination of hard data (i.e., facts), perceptions, and values.
We act on the basis of incomplete information
Anchoring we tend to place disproportionate weight on the first information
HOT and COLD decision-making
Heuristics : experience-based techniques for problem soving , learning and discovery
Formal decision-making rules (e.g., first look left, then look right).
Experiential decision-making rules (e.g., how fast traffic travels).
Culturally-based decision-making rules
e.g., Do other road users obey therules?; jay-walking, etc.).
We often use heuristics in managementndecision-making.
however, that in trusting our gut instinct we are combining formal, experiential, and
cultural rules. Generally they are helpful HOWEVER can lead to severe errors and
biases
1. Overconfidence bias: the tendency to overestimate the probability that youre right, more optimistic, you
may avoid problems while planning. less successful,people more knowledgeable, less display confidence,
2. Anchoring: the tendency to stick to an unreasonable anchor and then adjust
insufficiently.
3. Availability: the tendency for people to base judgments on information that is readily
available to them.
4. Escalation of commitment: an increased commitment to a previous decision in spite of
negative information, view themselves responsible for failure, people who spend more money and time,
easier to escalate of commitment
5. confirmation bias: seek out infor, do what people want to hear

Lecture 3 Group dynamics, team, team leaderships

LeadersGroup Dynamics, Teams & Team

Leadership

Advantages of working as a team

It is more productive (the creation of SYNERGY).
It improves team members quality of working life.
It improves an organisations problem solving capabilities.
Working in groups is a more natural form of organisation
Group: Two or more people acting interdependently to achieve a
common objective.
The strength of the interaction depends on the nature of the common objective, the context in which it
takes place and the temperament of the group members.
Groups can be FORMAL or INFORMALremember the work of the Human Relations School.
In organisations, formal groups are intentionally formed to achieve an objective set by the organisation
itself.
In organisations informal groups can emerge spontaneously and reflect the common interests of their
members.
The goals and objective of an informal group may not be in alignment with those of the organization
(subversion)

Through interaction with our peers we acquire beliefs, attitudes, values, and characteristic behaviours
In this way, who we associate with has a crucial impact on our sense of IDENTITY
Groups also create a social setting where we can exert influence on others (e g exhortation demonstration
e.g., demonstration,
Groups satisfy important needs (social affiliation, common purpose, recognition, etc.)
Work teams recognise interdependence like informal groups
Work teams are striving towards a common objective.
A work teams common objective is (or, at least,should be) aligned with the objectives of the
organisation
Work teams also make use of the SYNERGY effecti.e., team members couldnt achieve in
isolation what they achieve together
Team development

Tuckmans traditional five stages models attempt to evaluate such team development by dividing
into 5 parts---- forming, storming, norming, performing and adjourning (Tuckman,1965).

Time pressure affects group development and performance

Equilibrium (stability) punctuated by:
Critical first meeting (Phase 1)
Midpoint transition
Rush to task completion/deadline (Phase 2)
TEAM SPIRIT
1. Building a sense of relationship (belonging & trust)
2. Creating a sense of possibility (common purpose)
3. Experiencing team solidarity (certainty about what needs to be accomplished)
4. Mutual recognition of other peoples potential to contribute
5. Establishment of a sense of freedom (the team as an entity becomes taken forgranted)
6. Strongest manifestation of the team as a unified entity

MAINTENANCE (sometimes called PROCESS) where the team focuses its efforts on establishing
common purpose and cohesiveness.
TASK where the team focuses its efforts on getting the job done.

How attractive is the group to its members?

Influenced by: Size, diversity, success, threats and competition
Consequences: Greater conformity, stable membership, external threats
Group size:
Satisfaction: larger groups, less satisfaction. While, the more, the merrier.

Reasons: 1 opportunities for friendship increase, develop these may decrease

owing to the sheer time and energy
2 different viewpoint---- prompt conflict and dissension
3 inhibited about participating
4Less easily with success and accomplishment
Performance: additive task( group performance is dependent on the sum of
performance of individual group members), larger, greater, the more the
merrier
Disjunctive tasks(is dependent on the performance of the best group member),
the more the merrier, since probability of great performer is increased
Process losses are performance difficulties that stem from the problems of
motivating and coordinating larger groups
Conjunctive tasks: tasks in which group performance is limited by the
performance of the poorest group member
Diversity of Group Membership
Diverse group , more difficult time communicating and becoming cohesive
Perform better sometimes if task contain more about creativity rather than
more routine work
Dimensions
Role ambiguity lack of clarity of job goals/methods
1 organizational factors, 2 role sender, 3 focal person
Role conflict: a condition of being faced with incompatible role expectations

Norms

Make behaviour more regular and predictable

Collective
Compliance/discipline

Eg dress norm, reward allocation norms, performance norms

Principles for effectiveness: factors that contribute to the effectiveness of crossfunctional teams
Compositionall specialities are necessary, wont overlook anyone
Superordinate goals: attractive outcomes that can only achieved by
collaboration
Physical proximity: leave near to facilitate informal contact
Autonomy: meed some autonomy from large organization and some authority
to commit function to project decisions
Rules and procedure basic decision procedures must be laid down to
prevent anarchy.
Leadership: strong people skills

The Disciplinary Effects of Groups

A group exercises a disciplinary effect on its members to ensure they behave in acceptable ways. What is acceptable
tends to reflect the values of the wider social setting from which the groups members are drawn. However, if a group
becomes socially isolated it can lose its moral compass (William compass Golding).

The rise of Groupthink (Irving Janis)

A mode of thinking that people engage in when they are
deeply involved in a cohesive group, when the members'

strivings for unanimity override their motivation to

realistically appraise alternative courses of action.
Possible outcomes:

1. A feeling of invulnerability creates excessive optimism and encourages risk taking.

2. Discounting warnings that might challenge assumptions.
3. An unquestioned belief in the groups morality, causing members to ignore the consequences of their
actions.
4. Stereotyped views of outsiders (enemies).
5. Pressure to conform against members of the group who disagree.
6. Shutting down of ideas that deviate from the apparent group consensus.
7. An illusion of unanimity with regard to going along with the group ( sometimes called the
Abelene Paradox).
8. Mindguards self-appointed members who shield the group from dissenting opinions.

Social Loafing & Free-Riding in Teams

Social loafing Tendency of certain members of a group to get by with less effort than
what they would have put when working alone.tends not to be conscious (it is not selfinterested or opportunistic) The performance of a team seems to flatten out as its gets
bigger, In other words, productivity gains do not increase proportionally with team size
Poor coordination?
Not pulling your weight

We just think everyone else is pulling

Can have demotivating effects on rest of team (Ingham et al. 1974)
But free riding (is taking advantage of others to reduce your effort without paying a financially
penalty (self-interested,opportunistic, utility maximising)) tends to be conscious/deliberate
When there is a collective work product (e.g., in teamwork) we find it difficult to measure an
individuals marginal contribution to the teams productivity.
Therefore, team members tend not to maximise their effort because any increase in their
contribution will not be rewarded. Can lead to a situation where everyone in the team decides its
not worth working at full capacity.
Free-riding
You may not be free-riding and you may still be exerting effort, but that effort is not directed
toward your colleag es or your employers advantage e.g., surfing
the web at work, speeding up your work so you can go home early, etc.).
possible reasons for free-riding Individualism versus Collectivism
It appears that some cultures seem better able to cope with the demands of teamwork than others.
In Western societies we are brought up to expect our reward to be based on our individual effort.
This tends to pit us against our colleagues in a competitive relationship, which militates against the
demands of teamwork.
One of the key aspects of team-skills training is to overcome the cultural tendency toward individualism
and foster collectivism.

Leadership
The influence that individuals exert on others to achieve goals in
organisations

 Leadership is a fundamental activity for managers (although not all managers

are effective leaders)
BUT, organisational members can be leaders without occupying a managerial
role
Traditional conceptions of leadership are not always compatible with teams.
This has led Barry (1991) to develop the concept of Distributed Leadership.
There are four types of leadership that must be exercised for a team to be successful.
ENVISIONING Creating a strong vision of the purpose of the eam that can easily be translated into a set
of values (maintenance(common purpose+cohesiveness)
ORGANISING Providing structure through a focus on details, deadlines, and structures (task(get the
work done) & maintenance).
SPANNING Networking, gathering information, championing the team in the rest of the organisation,
dealing with outsiders, preventing the team from becoming isolated, etc.; importantly, the spanning leader
may have to coordinate the teams activities with the rest of the organisation (task & maintenance).
SOCIAL Negotiation, conflict resolution, surfacing problems, confronting anti-social behaviour
(maintenance).
Importantly, all these leadership qualities are unlikely to be found in one person, and must be shared
throughout the team.
Different kinds of teams require different kinds of leadership at different times

Lecture 4 Values, Attitudes and Behaviours

Key points
Value+ attitudes influence our behaviour, behaviour change attitudes (role
playing, prison experiment ) and if attitudes do change it becomes selfreinforcing
a broad shared value is a basis of culture
If we want to work effectively, particularly managing staff, we need to understand what
shapes behaviour
In part it is a function of social pressures (conformity)
But it is also shaped by individual values and attitudes that affect behavioural component
Collective values form the basis for culture, which is expressed in the form of characteristic
attitudes and behaviours
Most of us will work across cultures so we need to understand the impact of culture on
behaviour

Compliance: implies external coercion, do sth because other tell us to do, involves assessment of
consequences, result of rules, laws---a formal value system
Conformity: implies internal acceptance, no external instruction, social presseure(mob behaviour) do
because everyone else does----internalised value system

The Milgram Obedience Experiments (1961 onward)

Conformity or compliance? it looks like a simple case of obeying an external instruction
(compliance) but we are brought up to obey authority figures as an internalized value conformity)
The Stanford Prison Experiment (1968)

The students quickly began acting out their roles with "guards" becoming and "prisoners" showing
extreme passivity and depression.
Jane Elliot blue/brown eyes: superior colour oppress inferior colour and they feel depressed
Conformity:
1 social pressure eg: peer pressure, mob behaviour, would lead us to run counter to our personal values
2 conflict: fitting in vs doing the right thing
3 more or less likely: same direction
4 values bring into organisation would impact on behaviour
5 internal value(personal) vs external (organisational) value
Values
1 expression of right conduct, right or good-----bring a better set of social arrangement(better environment)
2 rank by content/intensity, EG: rank important and strongly held value (fairness) higher than trivial and weakly held (fun)
3 terminal: goals that people pursue over a lont-term, wider ambition rather than specific achievement, eg: achieve
recognition in society
4 instrumental: the means to achieve long term-goals, usually specific, eg in order to achieve recognition I need to work
hard
Attitudes

1 evaluative statements that relate to a specific proposition

2 a.my pay is poor--- cognitive component, the opinion/belief segment of an attitude
Sets the stage for more critical part: affective component I feel angry, emotional or feeling segment of
an attitude, lead to behavioural component I need to find another
Attitudes ----- behaviours
Job satisfaction: 1 a positive feeling about ones job based on an evaluation of its characteristics
2 multifaceted attitude: job content, pay, promotion
3 influence employee behaviour
Dissatisfaction behaviour:
EXIT behaviour directed towards leaving the organisation.
VOICE actively and constructively attempting to improve conditions (e.g., participation in
decisionmaking, suggestion schemes, cooperation with managers, etc.).
LOYALTY passively but optimistically waiting for things to improve (e.g., trusting managers to do the
right thing).
NEGLECT allowing conditions to worsen (e.g.,absenteeism, reduced effort, etc.).
This illustrates the fact that (a) attitudes influencevbehaviour and (b) management can influence
attitudes
Job satisfaction is straightforward to measure and can be correlated with a range of outcomes, notably:
Positive correlation with productivity
Negative correlation with turnover
Job satisfaction is also correlated with management practices, notably:
Human Relations approaches to work organisation
Training
Input to decisions
If people appear to share values, attitudes, and behaviour then we can begin to divide them into groups.

Sometimes clear patterns of values cut across traditional demographic groupings

We can begin to think of shared values as a partial expression of a CULTURE

In OB we will take Culture to mean systems of shared understanding of the world.

Shared values, attitudes and behaviours are an expression of that shared understanding,
i.e., Values are the bedrock of culture; the glue that holds a society together.

historical - it is passed on through the generations by learning.

a moral force - it defines how things ought to be (normative).
associated with stability - This is the way we have always done things around here
an issue of EXCLUSIVE identity - He/she/they are different.
an issue of INCLUSIVE identity - Were facing a common problem here.
subject to change - but usually slowly and incrementally incrementally.
Developed the idea of HIGH-CONTEXT & LOW-CONTEXT cultures .

Values like Hofstedes (Week 4) can characterize certain organizational cultures (Week 9)"

Lecture 5 motivations

Key points
Motivation means effort, persistence, direction, goals
Theory of MOTIVATION: 1 Abraham Maslows, ERG (three level)and McClelland (conditions).e.,
they do not take into consideration social and organisational influences on motivation.
2 do take into those influences: Process theories: theories explain how motivation occurs
a, expectancy theory: motivation may affected by the results people expect to get from the
work
b, equity theory, people would compare own input and outcome with others
c, goal theory, how to set goals for people to achieve
3 motivation job design job design job characteristic(1 skill variety 2 job
significance 3 autonomy 4 job identity 5 feedback) and job enrichment

Motivation:
We define motivation as the degree of persistent effort directed towards a goal
The amount of EFFORT someone puts into achieving a work related goal (i.e., how hard
they try) remember, it is not just PHYSICAL effort.
Humans are intentional beings the internal world of the mind is directed to outside matters.
Theories of motivation attempt to link the internal world of the mind to the outside world
of behaviour.
encourage desirable behaviours and discourage undesirable behaviours.
PERSISTENCE in exercising that effort.
DIRECTION i.e., it is aimed at achieving a goal
GOALS: all motivated behaviour has some goal or objective toward which it is directed
Intrinsic motivation: self-applied, directly stems from relationship with workers and task
Extrinsic motivation: applied by others, stems from working environment external to the task
Abraham Maslow Humanistic Theories of Motivation
Maslows reaction against behaviourism was to insist that human actions are motivated by certain
universal needs.
This assumes an escalating degree of conscious intent we pursue a need if we think is in deficit but, once
satisfied, we move on to pursue another need (the progression principle).
These can be arranged in a hierarchy of importance.

Theories like Maslow, ERG (three level)and McClelland (conditions) are popular and intuitive but
they are STATICi.e., they do not take into consideration social and organisational influences on
motivation.
Process theories
Motivation theories that specify the details of how motivation occurs
Expectancy theory:

Expectancy theory: states that

motivation is determined by the
outcomes that people expect to
occur as a result of their actions on
the job
If rewards are not attractive and/or
if people feel that they cannot
accomplish the activities that lead
to rewards, their effort will
decrease.
Content---process:
People perceive different outcomes
as more or less different

Equity theory: describes how and why people react when they feel unfairly treated

 Goal setting theory: focuses on how to set goals for people to reach

Job design includes 1 job characteristics + 2 job enrichment

Use job design to motivate ppl
Our knowledge of intrinsic motivators suggests that the content of a job (i.e., the tasks) will influence satisfaction and
thus motivation

 The more scope (whole area it deals with) a job has (breadth/variety and depth/autonomy) the more its motivational
effects

The lesson from the research on job design is that jobs which have a range of tasks, high
autonomy, etc. are motivational, especially when employees are empowered
job motivation

Psychological empowerment dimensions(aspects)

1 competence(ability to do things well)
2 meaning
3 self-determination
4 impact
Jobs that are designed according to the principles of scientific management (narrow,
shallow, etc.) are poor motivators
The lesson from the research on job design is that jobs which have a range of tasks, high
autonomy, etc. are motivational, especially when employees are empowered

Lecture 6 conflict and negotiation

What is Conflict?
Involves two or more parties
Can be overt (visible and perceived) or covert (unseen) but our interest is primarily in
overt conflict
One or both parties perceive that the other party or parties has had a negative impact on
their interests (or is about to)
Varies in terms of its intensity and importance, as well as the significance of outcomes
Where does conflict come from?
Interests: different individuals and groups have different interests
Perceptions: when there is a perceived clash of interests this creates conflict
The specific causes of conflict can be grouped into three categories: communication;
interpersonal; structure
Cause 1: Communication Problems
Where people in organisations do not communicate effectively with each other there is
potential for conflict
Caused by jargon, semantics, lack of sufficient information, etc.

too little/ too much cause conflicts, over-communicate will cause conflict
Non-verbal communication - turning away and turning towards
Interaction Disintegration (& Repair) Stop interrupting me!; You always have to have
the last word!; If you would just let me finish!
META-COMMUNICATION talking about talking
not the most important source, but most obvious manifestation
Cause 2: Interpersonal Issues
Sometimes the personalities of individuals in organisations lead to conflict
Emotions can cause conflict, e.g., a co-worker who is constantly angry about her/his
personal life
Differences in fundamental values, e.g., about what constitutes ethical behaviour, can lead
to conflict
Cause 3: structure
Within organisations, occupants of different roles have different interests, which can bring
them into conflict
e.g., CFOs agenda is to contain costs, while HR managers agenda is to upgrade skills via
spending
more on training
e.g., Employees interests are in being paid as much as possible per unit of effort, while HR
managers is to reduce payroll and increase output (structured antagonism)
Is Conflict a Bad Thing?
Traditional (unitarist) view conflict is dysfunctional and avoidable
Interactionist view conflict can be functional OR dysfunctional, and functional conflict
should be encouraged
Focused- or Managed-conflict view there are some specific cases where conflict can be
beneficial (e.g., teamwork)
Types of conflict
Task conflict low to moderate levels can be productive
Process conflict low levels can be productive
Relationship conflict mostly destructive
Relationship Conflict
The GLoP Problem From You did x! to You always do x to You are an x-type person!
GLOP can cause us to see ourselves and each other not as unique individuals but as a
certain type of person.
The Four Horsemen - criticism, defensiveness, contempt, and stonewallingthey delay
giving a clear answer or making a clear decision, often because there is something that they
want to hide or avoid doing.
Negative Affect Reciprocity & Escalation attribution error; Our problems are a result
of your moral failings.
Can Conflict be Eliminated?
The roots of conflict actual and perceived threats to interests are perennial (keep
occurring)
History shows us that conflict is a constant feature of all human societies (see Steven
Pinker)
In organisations, there will always be communication, interpersonal and structural issues
Conflict can be managed to some extent (e.g., via negotiation), but it cannot be eliminated
entirely
Stage of conflicts
Stage One: Potential Opposition
One or more of the causes discussed earlier is present, which provides the potential for
overt conflict to emerge
The presence of one or more causes is a necessary, but not sufficient, condition for conflict
to emerge
Communication

 Interpersonal
Structure
Stage Two: Cognition and Personalisation
If the conditions in stage one threaten the interests of one or more parties, conflict becomes
a reality
but need not go any further unless
Cognition/perception level: one or more parties becomes aware of the conflict
But need not go any further unless
Personalisation/felt conflict: one or more parties experiences conflict (tension, anxiety,
frustration, hostility)
Which can lead to intentions
Stage 2 is important as its where conflict issues tend to be defined, willing/unwilling to
compromise. And emotions play a major role in shaping perceptions.
Stage Three: Intentions
When a situation is perceived and felt to be conflict, parties to the conflict may form
intentions to do something about it
Intentions can be classified as:
Competing: I will pursue my own interests regardless of the costs to the other party
Avoiding: I cant deal with this (give up own interests , uncooperative)
Compromising: we will both sacrifice some of our interests (
Accommodating: I will sacrifice some of my own interests for the sake of the other
party(unassertive+cooperative)
Collaborating: we will seek mutually acceptable outcomes
Stage Four: Behaviour
Based on intentions, parties to a conflict engage in behaviours to manage the conflict
Behaviours can emphasise either
Conflict resolution; or
Conflict intensification
Behaviours will be informed by (a) intentions and (b) the level of conflict
Resolution and Intensification Tactics
Resolution
Problem solving Superordinate goals Expansion of resources Avoidance Smoothing
Compromise
Escalation
Communication Bringing in outsiders Appointing a devils advocate
Stage Five: Outcomes
Potential Functional outcomes
Brings into the open problems that have been ignored previously
Challenges groupthink
Encourages new ideas, facilitating innovation and change
May improve decision quality by forcing people to challenge their assumptions
Potential Dysfunctional outcomes
Negative emotions and stress
Reduces communication required for coordination, i.e., Leads to inefficiency
Destroys group cohesion(group members fit together)
The Negotiation Situation (Adapted from Lewicki 1994)
Two or more parties (individuals or groups)
Conflict of interest between them, i.e., What one wants is not necessarily what the other
wants
Belief that it is possible to get a better deal by influencing the outcome, rather than simply
taking whats on offer
The parties prefer to search for agreement, rather than giving, breaking off the relationship
and falling back on BATNA (i.e., the Best Alternative to a Negotiated Agreement, the lowest
value acceptable to you for a negotiated agreement)
Distributive Bargaining: negotiation that seeks to divide up a fixed amount of resources: a
win-lose situation

First aggressive offer:more power, gain advantage+ the Anchoring bias, anchor point is
set, fail to adjust subsequently
Fixed pie: the belief that there is only a set amount of goods or services to b divided up
between the parties
Integrative bargaining: negotiation that seeks one or more settlements that can create a
win-win situation
Compromise is the enemy to negotiate a win-win agreement
Convergence() of interests (potentially and partially)
Longer-term focus
e.g., negotiating a benefits package with a valued employee
Bargaining characteristic
Distributive bargaining
Integrative bargaining
Goal
Get as much pie as possible
Expand the pie so that both
are satisfied
Motivation
Win-lose
Win-win
focus
Positions
Interests
Interests
Opposed
congruent
Information sharing
Low
High
Duration of relationship
Short-term
Long-term
Lecture 7 organisational change
key points: 1 plans to changes 2 killers+cures

LINKING MICRO AND MACRO OB

Values like Hofstedes (Week 4) can characterize certain organizational cultures (Week 9)"
Conflict can come from different sources (Week 6): one is communication (Week 8) and
another is structure (Week 12)"
Implementing a complex change effort (Week 7) can be facilitated by communication (Week
8) negotiation among parties (Week 6)"

WHY IT MATTERS
Change is inevitable in organizations", often causes stress and resistance "

 As an employee, you will be affected by change"

As a manager, you will be asked to plan and implement change
THEORIES OF CHANGE
1 why is there changes, 2 what is the nature 3 who executes change 4 how change is
executed
Why is there changes?
1.EXTERNAL FORCES
Socio-cultural factors: tastes, life expectancy, family size, etc.
Technological factors: digital technology, level of R&D efforts
Economic factors: GNP, inflation, exchange rates
Political and legal factors: laws, safety standards, labor practices
INTERNAL FORCES
Problems with employee performance
Problems with internal processes (decision-making, cumbersome procedures)
New management
New strategies, objectives, products, markets
Fads and fashions
THINGS THAT SHOULD CHANGE
CHANGE STRATEGY (Week 11): Mass production to customization
CHANGE TECHNOLOGY: Change long assembly lines; use the Internet to gather specs quickly
CHANGE COMMUNICATION (Week 8): Customer preferences should be heard and given quickly through
marketing, to manufacturing and research and development

CHANGE POWER (Week 10): More power for customers in dictating design; R&D should not
impose
CHANGE CULTURE (Week 9): Increasing acknowledgement that customer is king
CHANGE STRUCTURE (Week 12): up cross functional teams so that sales, R&D, and
manufacturing can talk often and quickly
Nature of change
Revolutionary change: change that alters organisations very nature
Evolutionary change: ongoing minor changes that are incorporated in the existing
organisational strcture.

Management would prefer avoid change, becaused of its cost, disruptive impact and
threat to managements control.
Hence, two options. 1 change incrementally as environment changes, achieve environmental
fit but create internal inconsistencies. 2 delay change until it is necessary and make it

comprehensive. Maintains internal consistency but price of having poor environment-structure

fit
Hence, mangers would always seek steady state , punctuated by some changes----gain
organisational effectiveness
Planned change: refers to situations in which organisations have adequate time to anticipate and formulate a
response to the drivers of change.
Eg: change for new equipment
Plan process: Management could draw up schedules for installation of the equipment, undertake job redesign and
reallocate management tasks. Management may not, do this entirely successfully, but at least the opportunity fr
planning for the introduction of new equipment I present.
Systemic e.g., major new technology; privatization or deregulation; entry into a major new market
Adaptive e.g., updating computer systems, modifications to existing plans
Unplanned: response to an unanticipated threat or event
Chaotic e.g., terrorist attack, hostile take-over
Transitory e.g., strike, sudden change in commodity prices, loss of key personnel

4(A): RESTRAINING FORCES

PEOPLE CAN MAKE IT DIFFICULT: When change takes place, those are satisfied would resist
PROCESSES CAN MAKE IT DIFFICULT: Bureaucratic features tend towards stability;
procedures are already locked in
CULTURE CAN MAKE IT DIFFICULT: Existing cultures tend to normalize the way things are
done; people tend to resist changing their routines
4(A): UNFREEZING
Education and communication

Participation: reduce resistance, obtain commitment, and increase the quality of the change
decision
Coercion: force people through policy
Realigning staff profiles: change staff

4(C): REFREEZING
Burning bridges: Ensure there is
no way back.
Evidence stream: Show them time
and again that the change is real.
Rites of passage: Use formal
rituals to confirm change.
Socializing: Build the new way of
doing things into the social fabric.

Either way, there is someone, or

some group, that identifies with
introducing the change.
Determines nature and type of
change.
Change agent: ppl in power and
they also want replace or
constrain those in power such as
senior executives, powerful
employees Knowledge, skill,
attitude
The change itself, hopefully would
improve organisational
effectiveness

OFP, how manage it sucessfully

Lecture 8 Organizational communication

Key points: shape how we act

Encoding:
Decoding: PERCEPTUAL LIMITATIONS!
Selective perception we only hear some of the information we receive!
Selective retention we only retain some of the information we hear

DISTORTION! = ENCODING + DECODING PROBLEMS

ENCODING AND DECODING ARE SHAPED BY!
Environment, background, experiences!
Values, attitudes, personality!
Relationship between sender/receiver!
Non-verbal communication !
Perceptual limitations!

FEEDBACK
Feedback helps us understand how our messages are received!
Feedback helps us modify our communications and behaviour!
But feedback is also communication and subject to distortion !

Open system

Functional approach helps us

understand organizational
communication by describing what
messages do and how the move
through organisations. It describes
organizations as dynamic
communication systems with the
various parts of the system
operating together to create and
shape organizational events.

Message function: what

communication does or how it
contributes to the overall
functioning of the organization.
Divided into below three
categories.
Organizing function guides,
directs, and controls
organizational activities.
Relationship functions: reflected in
individual satisfaction with work
relationships, productivity,
employee turnover, overall
support for organizational
practices and a variety of other
less obvious ways.
Change fuctions: determined by
whether the organization gathers
infor form the best available

LOAD
How many messages does it take to get your messages across
Underload: easy and repetitive jobs, overload: hard,

MEANING-CENTERED THEORY
All human interaction is communicative whether intended or not; you cant not communicate!
Communication in organizations creates shared understandings and meanings!
These shared meanings shape our experience of what the organization is; they help us make
sense of the organization!
Based on our sense making, then we act (or not) accordingly!
Communication shapes the way we organize activities and the decisions that we communicate!
Communication is intended to influence people and communication rules reinforce power!
Communication helps to create a particular organizational culture!
We socialize new members through the way in which we communicate with them!
Therefore by changing the metaphors we use,we can change: !
the way we think and act as individuals!
organizing & decision-making, power & influence, socialization and culture

Lecture 9 culture
A strong culture meant a more profitable company"
Flurry of research on organizational culture as a way to understand people in
organizations
Enron"
The largest bankruptcy in US at the time" A culture of arrogance and greed
"4,000 lost jobs and life savings in pension fund" 85,000 jobs lost at Arthur Andersen "
Skilling jailed for 24 years; Lay died"
British Petroleum(BP)"
Explosion on the Deepwater Horizon oil rig " A lax safety culture" Total costs now
reaching up to $38bn"
CEO Tony Hayward lost his job " Government trying to prove gross negligence will
increase damages"
News of the World"
Phone hacking scandal, Leveson inquiry" A culture of fear and of cover up" Tabloid
closed; two editors facing criminal charges" Entire company (NI) is under investigation"
James Murdoch stood down as chairman of News International "
WHY YOU SHOULD CARE

WHAT IS ORGANIZATIONAL CULTURE?

THE WAY WE DO THINGS AROUND HERE"
The customary and traditional way of thinking and doing things which is shared to a
greater or lesser degree by all members and which new members must learn in order to be
accepted into the services of the firm it is a system of a shared meaning about the
organization, its purpose, its members and how they should behave within an organisation
key concepts: culture is composed of beliefs and assumptions
Which are reflected in patterns in physical artifacts, language use, symbols, rituals,
practices that have evolved over time"
beliefs and assumptions form mental concept about reality of what we considered--affect how events are perceived and affected.
Rarely question or evaluate since we take them for granted, hence, maybe unable to
identify own basic beliefs and assumption
Until move to different social system, ours are not dominant. If beliefs and
consumptions shared amongst a population, then communication and control are
improved
Culture has a purpose: do not emerge randomly, enable the org to survive by providing common set of
values which facilitates understanding between ppl (collective identity, work together), fit external
environment, emergent culture(new employees) be transmitted through process of socialisation of new
employees.
Indentity and belonging: culture is not only a feature of org whose sole purpose is to achieve
environmental adaption, it provides sense of belonging to member.
Similarity of culture: it exist to facilitate the orgs movement towards its goals. Large org operate in similar
environment, so similar culture.

Hijack
(negative
implication
on symbols)

Managing culture
INTEGRATIONIST THEORY
A single, uniform strong culture is better "
Allows people to work together: common set of values, less need for rules"
Makes organization stable; culture is reproduced"
Makes the organization more effective (functionalist)"
Allows it to survive or thrive in the environment (EXTERNAL ADAPTATION)"
Holds its members together (INTERNAL INTEGRATION)"

Schein identify culture as playing an important role in internal integration and in external
adaptaion of the org to its environment. Ie:argreement the organizations goals and mission
and on the strategy of how to achieve them.
Effectiveness requires that an organisations culture, strategy, environment and technology
be aligned with the organisations goals. The stronger an orgs culture, the more important it
is that culture be appropriate with other variables.
Good external fit: its culture will conform to its strategy and environment.
EG: market-driven strategies should be more appropriate in dynamic environments and will
require a culture that emphasises individual initiatives, risk-taking, high integration, tolerance
of conflicts and high horizontal communication.
Product-driven strategy focus on efficiency, work best in stable environments, and are
more likely to be successful when the organizations culture is high in control, minimises risk
and conflict and emphasises conformance to standards.

Good internal control: with their culture properly matched to their technology.
As for stable environment: perform routine (stability ), eg: airline
for dynamic: non-routine tech
environments are rarely stable, techonology and action are constantly changing.
Since organisations culture influences its ability to adapt to these changes. Hence, change
overtime.

Managers engineer create the right type of culture via:"

Founders"

Founder have a major impact on establishing early culture. Since they have a vision or mission as to what
the organisation should be (bias). The orgs culture results from the interaction b/w founders biases and
assumptions and what the original members employ learn from experiences.
Selection"
Identify and hire individuals who have the knowledge to successfully perform the jobs(important: who fits
better)and select out those who undermine and attack core valud. As for employee, once cannot be
compatible. They can withdraw, so both of them could withdraw if mismatch.
Leadership" = culture carriers
Guides to what behaviour is acceptable and how problems of org should be approached.
Socialization"
Help new to adapt.eg: induction courses
Rewards and punishments"
Channel and direct behaviour.
To improve organizational effectiveness"

DIFFERENTIATIONIST THEORY
Martin et al argues that an organization is characterized by a differentiationist culture when it
comprises a
Organization is a cluster of sub-cultures related to particular challenge, task, responsibility of a unit or
group"
Consensus is found not at organizational level but in sub-cultures"
Relations among sub-cultures can be complementary, conflicting or independent"
Boundary between inside and outside is permeable

MANAGING DIFFERENTIATIONIST SUB-CULTURES

Middle managers should manage culture "
Still sees management of culture as possible and desirable; still functionalist"
CRITICAL THEORY OF CULTURE
Both integrationist and differentiationist theories are functional i.e., look at culture from managements
point of view"
Critical theory takes a different approach looks at how employees are affected"
Focuses on the way in which power is embedded in culture"
Especially interested in how strong culture is a way to control employees"

Lecture 10 Power and politics

Power is the capacity to influence the behaviour of others " and Politics is the exercise of power

"power has to be exercised to influence outcomes " can be positive or negative connotations "
since Multiple decision makers with different backgrounds, interests, and goals. " , would result
Differences of opinion regarding problems and solutions." Conflicts then arise among these groups
as they pursue different interests, goals, solutions" . It is inevitable and sometimes even

acceptable" Employees are affected by hidden uses of power"

First dimension, manage resource, to defeat resisitance

power is exercised by mobilizing various resources(scarce, valued, others depend on it) to
influence the outcome of decision making processes; The term Politics describe the
process of excersing power.
decision outcomes were influenced by actors inclination to and expertise in using power,
saw power as the ability to get others to do what you want them to do, if necessary against
their will(WEBER) or to do sth they otherwise would not do. (Dahul).
MORE IMPORTANTLY, both assumed that the exercise of power occurred only in decisions
where conflict was clearly observable.
(
The use of resources = power vases.
The aim is to defeat resistance, or at lease confront it directly. And power can be exertised
to produce favourable decision. This form of power is relational( an actor only has power
inrelation to another actor), context-specific(depends on situatio) and dynamicresource
may change overtime.
If A want to achieve sth. While B refuse. Then A mobilize resources. Conflict becomes
obvious. The resistance of B is directly confronted.

1 Robert DAHL CONCLUDED:" power conflict

community would be termed as pluralist() if different groups prevailed in decision
making and its not ruled by an elite scarce resource could control). the
Notables(mayor, elite group) were not monopolizing power; different groups could exert their
influence" so power is only exist when key decision has conflicts.
For example: notables did not heavily influence some key decisions, eg:public school education
even mayor was able to initiate , vote decisions.

2. sources of power: since power is started to attract considerable interest, (Emerson)

The second dimension of power: mange processes. To sideline resistence

Bachrach and Baratz state: control the participants in (when ppl threaten power-holders,
they can be kept out of the decision arena) and agenda(whencertain issues threaten powerholders, they can be kept out of arena) of those processes. The use of it is called nondecision making. He also states power relationship exist there must be a conflict of
interst or values).
Eg: A want B to do sth, B do not want to do
So b refuse. Resistence is indirectly confronted by A. so A could continue making
decisions.
Managers could use second dimension to bring abt changes in organisations. Such as
change d-m process, reporting relationship, allocation of responsibility.

The second and first dimension converge: both focus on the exercise of power in or around
the decision-making as part of a deliberate strategy to achieve intended outcomes.
Difference: first is directly confronted, second is sidelined, so less visable.
For both of them, power refers to the ability to secure preferred outcomes in the face of
conflict among declared opponents.

Third dimension: manage meaning, prevent resistence

power can be used to secure preferred outcomes by preventing conflict from arising. How
conflict would not arist? By creating legitimacy and justification (myth, culture, language)
for certain arrangements, actions and outcomes so they are unquestioned.
Luke states power is most effective in its consequences when issues do not arise at all.
Eg actors difince success, not so much in terms of winning in the face of conflict(since
there is a risk of losing), but in terms of their ability to section off spheres in influence as
their domination is perceived as legimate, inevitable, natural, beneficial, and thus un
challenged, there is no opposition since outcomes are accepted(People either remain
unaware of the implications of political outcomes or view them in a favourable way): where
conflict does not arise at all.
Eg defence forces, reporting restrictions, pres briefings
Its usually associated with education, religion, media.
The strategy that help actors create legitimacy for preferred outcomes revolve around the
use of language(could mobilize support or create issues), culture(setting
,express importance assigned meetings and individuals), symbol(the implication it stand
for is in society), ceremonies, behaviour. Myth emphasize past and tradition in order to
legitimate existing power position. Strong culture embody unobvious mechanism could
bind individuals with goals without realizing political issues.

So power can be used to secure preferred outcomes by preventing conflict from arising.

Lecture 11 strategy
1 Porter: five forces
2 Porter: competitive strategies
3 Miles& Snow: strategic types
4 Mintzberg planned vs emergent strategy

According to Chandler, strategy is the determination of long-term goals,

adoption of course of action and the allocation of resources necessary to
achieve organisations goal. It establish he general purpose and direction of
the enterprise and the methods by which they will be achieved. Its how
firms make money. Its the way organizations manage their environment. It
shapes culture, communication, power and strcture.
Different approaches to strategy(strategy changes): Mintzberg states1
planning mode. It views strategy as a plan developed in advance. Managers
identify where they want to go and then develop a systematic and

structured plan to get there. So reduces the determination of strategy to a

well-thought-out process where rationality plays a significant role.
This applies to virtually most of the large firms especially those listed on the
stockexhcnage()external view as a factor of investment. Non-business
org increasingly adapt it.
environment is dynamic, so a stream of decisions have to be made
unanticipated opportunities and threats. This perspective is called
Evolutionary mode which views strategy as a stream of significant decisions
evolving all the time. Egl unexpected opportunity, changing perceptions of
board of directors,

Porters five forces:

Michael Porter states : key job of strategy is to deal with competition. Competition involves five
major forces in an industry.

2. Porters competitive strategies !avoid being stuck in the middle, differentiate,

focus
a. cost leadership, b. differentiation, c focus
cost: in order to control costs, basic, no frills, produce high volume, we need efficiency in
operations, technological innovation, low-cost labour, preferential access to raw materials

b. differentiation, need to be unique in its industry valued by buyers, price inelastic, to sell more
expensive since its value is enough to do so
c. focus, management choses narrow market segments for specific nees, and then adjusts strategy
to meet it. So hard to substitue

3 Miles& Snow: strategic types

It calssify organisations into one of four strategic types based on the rate at which they change
their products and markets.

Deferders, prospectors, analysers, !avoid being a reactor

Defenders: organisations whose strategy is to produce a limited set of products directed at a
narrow segment of the total potential market.
1 stay in domains, dont search outside for new opportunities
2 within domain, try to keep competitors out through aggressive pricing or high quality products
3 little environmental scanning, but intensive planning on how to cut costs,
4 growth occurs cautiously and gradually through penetrating more deeply in the same market
Eg: safeway, everyday low price
Prospectors: organisations whose strategy is to find and exploit new product and markt
opportuities
1 contiously searches for new products and new market opportunities
2 broad domain
3 experiments with emerging environmental trends
4 flexible structure
5creators of change and uncertainty , then their competitor must respond
6 growth rapidly
Eg: google

Analyzers:organization whose strategy is to move into new products or markets only after their
viability has been proven
1Analyzers attempt to minismise risk by adopting innovations after they have been proven by
others.
2 sits between an defender and prospector
3 try to capitalise on the best of both of the preceding types: operate in two types of product-market
domains, one relatively stable, the other changing. In stable areas: it operates routinley and
efficiently through use of formalized strctures and processes, to look for conformance
In turbulent areas: top managers watch their competitors closedly for new ideas, and then rapidly
adopt those who appear to be the most promising.
4 it not the leader of change, only go when certain
5 growth normally occurs a, market penetration, b product and market development
6 they live by imitations. successful copy others ideas (imitaion) through broad market surveillence
Eg: coles, prospected from Big W
Reactor: residual strategy that organizations follow inconsistent and unstable patterns
1 respond inappropriately, perform poorly
2 problem: reluctant to commit themselves aggressively to a specific strategy in the future
3 cause: top management failed to make strategy clear, may not fully shape strcture to fit the
chosen strategy
4 result: fail to follow up with the changes and challenges in the environment, ---decline or
extinction

Lecture 12: structure

Structure is the manner in which an organization divides its labour into specific tasks and achieves
coordination among these tasks.
Division might be horizontal and vertical
Vertical: 1concerned primarily with apportioning authority for planning and decision making---who
report to who 2 take into account about low-level
3 hard for communication, information filtering,
Horizontal1 it groups basic tasks into jobs and into departments so that organization could
achieve goals 2 different job designs as different units 3 differentiation, differ in terms of goals,
time spans..so different organization, so more autonomy
Types of structures: 1 simple structure: small, everyone does everything eg: set up, support,
design, market, research, manage

Formalization:, complex tasks dictate high formalization, eg design aircraft.but

sometimes seems excessive.

According to Chandler, firms follow a life cycle or path: simplefuctionalregional/customer

product---matrix
Firms end with a matrix structure
Strategy leads to structure
According to later finding, firms follow different cycles
Very few us matrix strcture
Structure can shape strategy
Organic structure: structrues ten to favour wider spans of control, fewer authority levels, less
specialization, less formalization, and decentralization.
Bouundaryless organizaiton: organization that removes internal boundaries (vertical: empowerment
to cross vertical boundaries, horizontal: cross functional teams), external barriers (network and
virtual organizations:, oursourcing( specialists an dsuppliers)so that employees
managers, customers can wordk together, share ideas and identify the best ideas. Traditional
strctures gradually become less usefull and replaced by flxible structrues break down external and
internal boundaries. , to adapt to envrionmental changes.

7s framework:structure and strategy need to be aligned and structure cannot stand on its own and
aligned with other 6S. 1 superordinate goals, style(culture), staff, skills, systems, and strategy.